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Fundraising Tuesday: How to Get Donors to Respond

January 23, 2024 by Dennis Fischman Leave a Comment

At the beginning of January, you heard from me about thirteen things nonprofits should STOP doing in their fundraising appeals. When you see a good example, though, please jump right in and do the same!

My first good example for you: RESPOND, New England’s first domestic violence agency and the second oldest in the nation. Both in their Spring and End of Year appeal letters, this nonprofit did things that are guaranteed to make their donors…well…respond!

RESPOND envelope

It starts with the envelope

RESPOND did three things that, before donors even opened the envelope, made it more likely they would read their message.

  1. Used a live stamp–a cute picture of a mama elephant and her baby–not a rubber stamp.
  2. Put their name, logo, and slogan (“Working to end domestic violence”) in the reply address. I knew who was sending me the message!
  3. Hand-wrote my name and my wife’s name in the address, and spelled the names right.

Last year, did your envelopes welcome the potential donors in to read your message? This year, could you borrow these three techniques from RESPOND?

The photos catch the eye

RESPOND Inc. Spring 2023 appeal letterBack in May, the letter featured the photo of a young mother cradling a newborn infant in her arms.

It’s touching. It’s beautifully composed: your eye follows the mother’s face to the baby’s, to her flowing hair, back to her face and then to the body of the letter. And it introduces the story that’s going to be told in that letter: about raising children in a safe space.

Respond End of Year 2023 appealThe letter that came out just after Thanksgiving shows the picture of a different woman, in her middle years, hugging herself, with a sad expression, but looking directly at you, the reader.

It, too, introduces one person’s story: a woman who had left her abusive husband but now faced the possibility of being evicted and out on the street.

(Notice that RESPOND didn’t try to talk about both women and their needs in one letter. They knew that a single story is more powerful, and they chose one story, one photo, at a time.)

These photos mattered. They didn’t replace the words, but they made me, the donor, want to read the words. Did you do that for your donors?

They had me at hello

If I think about it, I’ve never really had a safe place. I’ve been on my own pretty much from the beginning. I’ve had to raise myself.

If you saw the photo of the woman with the newborn baby and read these words, how would you feel? Would your heart go out to her?

The Spring appeal started with those two elements, that photo of a woman called Nicole and this quotation in her own words. As a reader, I wanted to hear her story. As a donor, I wanted to help.

“I thought I was doing everything right.”

When Priscilla walked into the RESPOND office this fall, her hands and her voice were shaking….

The End of Year appeal began that way, and again, it gripped me. Immediately, I was in the middle of the action, with a woman in trouble. I was looking for a way to help her–and RESPOND was right there.

Does the opening of your appeal letter make your donors want to know more, and to help?

Things get worse before they get better

Nicole married young. Her husband got laid off from work when the pandemic hit. He started to hit her. “And then, Nicole discovered she was pregnant.”

Priscilla made the hard, brave decision to leave her husband. He harassed her at her new place until she got a restraining order. Then, she came down with pneumonia. She was out of work for weeks, and the medical bills started to pile up. “She was holding a 14-day Notice to Quit–the first step to eviction proceedings.”

RESPOND made it clear just how bad things can get for women like Nicole or Priscilla. That made it urgent for me, the donor, to give.

Is your nonprofit showing the dire need for help and making the donor the hero of the story?

Don’t stop there

Research shows that your donors are more likely to look at their name, the first line, the photo, and the postscript than they are to read anything else. RESPOND knew that. They used the P.S. to call the reader to action.

P.S. Thank you for supporting RESPOND this Mother’s Day! Visit respondinc.org/donate (or point your smartphone camera at the square below) to get started.

Is your nonprofit getting the last word? Can you use a P.S. to get a better response on your next appeal letter?

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Nonprofit Financial Management: 3 Frequently Asked Questions

January 22, 2024 by Dennis Fischman Leave a Comment

A guest post by Jon Osterburg at Jitasa 

If your nonprofit is like most, you focus most of your time and effort on two priorities: fundraising, and furthering your mission. After all, your organization was founded to make a difference in the community, and fundraising provides the revenue you need to achieve that goal.

However, there is an essential step that comes in between fundraising and mission-related work: financial management. A solid nonprofit financial management strategy allows you to carefully track the revenue you bring in through fundraising and allocate it to fund mission-critical programs and projects.

As your nonprofit gets started with financial management, you’ll likely have some questions. In this guide, we’ll answer three frequently asked questions about nonprofit finances, including:

  1. Why is financial management important for nonprofits?
  2. What are the core aspects of nonprofit financial management?
  3. How can my nonprofit get started with financial management?

1. Why is financial management important for nonprofits?

Financial management is essential for all nonprofits, whether your organization is just getting started or is well-established. Some of the advantages you can gain by developing and implementing a financial management strategy include:

  • More efficient operations. Keeping track of your finances allows your organization to fundraise more sustainably, make more informed decisions, and plan upcoming projects and campaigns with less stress.
  • Long-term strategic planning. In addition to mapping out your short-term strategy, effective financial management helps you make projections about your organization’s future and determine how quickly it can grow.
  • Legal compliance. Because of your nonprofit’s tax-exempt status, it’s subject to some financial rules and regulations that for-profit organizations aren’t. So, you’ll need to put time and effort into financial management to follow those guidelines.
  • Transparency. Donors want to know that your organization is using their contributions to make a difference. By showing them that you’re managing your finances properly, you’ll build trust and deepen your relationships with them.

Financial management and fundraising depend on each other to succeed. If you correctly handle the contributions your nonprofit brings in, you’ll attract even more donations that can be used to further your mission and fund future fundraising campaigns.

2. What are the core aspects of nonprofit financial management?

Similar to a fundraising plan, nonprofit financial management involves three major elements: strategy, execution, and evaluation.

  • Strategy = budgeting. Your nonprofit’s budget is a financial planning document that outlines all of your expected revenue and expenses for a given year. According to Jitasa, most nonprofits categorize their revenue by source (individual donations, corporate giving, grants, etc.) in their budgets. Expenses are budgeted based on whether the money is spent on mission-related activities (program costs) or operating needs (overhead costs) so you know how your funding is being used to make a difference.
  • Execution = financial policies. Creating a standard set of procedures ensures everyone at your nonprofit is on the same page about how to handle the organization’s finances as they go about their daily activities. Your financial policy handbook should include guidelines for gift acceptance, staff compensation, expense reimbursement, investing, and more.
  • Evaluation = reporting. Financial reporting provides the previously mentioned benefits of transparency and compliance, plus analyzing your organization’s collected data helps with internal decision-making. The most important report you’ll complete each year is the IRS Form 990, which allows your nonprofit to stay tax-exempt. Most organizations also include some financial information in their annual reports for their donors’ benefit.

Once your nonprofit’s budget is finalized, following your financial policies will help you bring in the revenue you outlined and cover all of your predicted expenses. Then, you can use that information to create thorough, accurate reports that you can reference as you develop your budget for next year.

3. How can my nonprofit get started with financial management?

If you run a small shop, it is possible to start managing your nonprofit’s finances on your own. There are a variety of resources available online, from budget templates to the IRS guidelines for filing Form 990, that you can use to understand your organization’s financial needs. Additionally, it’s important to set your nonprofit up with specialized accounting software that you can use to collect, store, and pull reports of your financial data.

However, the best long-term financial management strategy is to work with experts. There are two main types of nonprofit financial professionals, bookkeepers and accountants. Here are a few of the key differences between these roles:

This graphic outlines the differences between nonprofit bookkeepers and accountants, which are discussed in more detail below

  • Bookkeepers are responsible for your nonprofit’s day-to-day financial needs. According to NXUnite, some of their tasks include recording transactions, writing and depositing checks, and processing payroll. Because your bookkeeper doesn’t need to be a Certified Public Accountant (CPA), you can give this role to any staff member with financial knowledge or even a trained volunteer.
  • Accountants focus on financial analysis, reporting, and decision-making. Their duties include guiding the budgeting process, filing your Form 990, and reviewing your financial policies to ensure compliance. Your nonprofit’s accountant needs to have their CPA certification, and most of these professionals also have at least a bachelor’s degree in accounting or a related field.

Because hiring an in-house accountant can be expensive, many small and mid-sized nonprofits choose to outsource their accounting services. You can also look for an outsourced bookkeeper if your organization’s needs become too complex for your staff and volunteers to manage on their own. No matter which financial roles you choose to outsource, make sure the external professional you partner with specializes in working with nonprofits for best results.


Jon Osterburg has spent the last nine years helping more than 100 nonprofits around the world with their finances as a leader at Jitasa, an accounting firm that offers bookkeeping and accounting services to not for profit organizations.

 

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Fundraising Tuesday: Is Direct Mail Useful for Nonprofits? Here’s What to Know

January 16, 2024 by Dennis Fischman Leave a Comment

A guest post by Joshua Meyer of Bloomerang

As far as nonprofit marketing is concerned, it doesn’t get more classic than direct mail. Large-scale direct mail has been a staple of nonprofit communications for decades. However, with the dominance of online fundraising, you may be wondering if direct mail is still worth the investment.

16% of donors still prefer to give using direct mail, second to online donations, but still a decent portion of nonprofit supporters. This guide will explore the benefits of keeping direct mail in your fundraising strategy, along with best practices for achieving a high return on investment (ROI) via direct mail.

Benefits of Direct Mail for Nonprofits

Direct mail empowers nonprofits with the following advantages:

  • Offers a high return on investment (ROI). Direct mail has an average response rate of 5.3%, compared to 0.1% for email, 0.6% for paid search ads, and 0.2% for online display advertising.
  • Helps your nonprofit stand out. Receiving a personally addressed letter makes supporters feel more individually recognized and helps cut through the digital noise.
  • Appeals to multiple senses. People are more likely to remember information that they process using more than one sense. With direct mail, supporters can process your nonprofit’s message using their senses of vision and touch.
  • Helps connect with older audiences. Research shows older adults prefer receiving more traditional forms of communication, such as printed materials and verbal communications.

Many supporters still feel a sense of excitement at receiving a letter personally addressed with their name. Direct mail can provide a compelling look into your nonprofit’s activities and reach donors outside the busy digital environment.

Tips for Leveraging Direct Mail Effectively

Just like any marketing strategy, direct mail requires you to have a concrete plan that enables you to take a thoughtful and strategic approach. You’ll have the most success with your direct mail strategy when you incorporate the following best practices:

Alt: List of tips for leveraging direct mail effectively for nonprofits (explained in the text below)

Personalize your outreach

80% of consumers are more likely to shop from a brand that offers personalized experiences. The same is true for your nonprofit’s supporters—they appreciate personalized marketing messages that speak to their unique interests.

Personalize your direct mail by following these tips:

  • Address letters with supporters’ names.
  • Reference past interactions.
  • Have your executive director sign letters.

For example, let’s say you’re sending out invitations for your nonprofit’s annual silent auction event. Here’s an example of a letter you might send:

Dear Angela, 

Thank you for your past donation of $100 on September 15, 2023, and your participation in our Spring 5K and Fun Run. Because of your generosity and past event attendance, we wanted to personally invite you to our annual New Year’s Eve Gala and Silent Auction on December 31, 2023. Please RSVP using the link or QR code at the bottom of this page. Hope to see you there!

Best wishes,

[Your executive director’s signature]

According to Bloomerang’s donor management software guide, a powerful donor management system is your most effective tool for personalization. Use your donor management system to store donors’ personal information and implement it into your direct mail outreach.

Tell stories

Stories tend to be easier to remember and more engaging than facts alone. They help audience members build an emotional connection to your cause. Implement these tips when telling stories via direct mail:

  • Write in a skimmable format. Use short paragraphs and break up text blocks using bullet points.
  • Incorporate visuals. Images that show people’s faces tend to work best for sparking an emotional connection.
  • Spotlight key messages using bolding or underlining. Make sure donors can understand your main message with just a glance.

Highlight one main protagonist in your story, such as a community member who received support from your nonprofit or the reason a board member joined your board. This practice keeps your storytelling more focused and allows readers to feel emotionally connected to your main character.

Leverage multichannel fundraising

Fundraising research shows that marketing campaigns that used direct mail and one or more digital media elements experienced a 118% boost in response rate compared to those that used direct mail alone.

Combine direct mail outreach with digital fundraising initiatives to create cohesion across your marketing channels and offer multiple donor touchpoints. For example, include a QR code or vanity URL on your letters or postcards that sends supporters to your online donation form.

This helps keep your message top-of-mind for donors while reaching them in unique ways that don’t overwhelm them with excessive communications.

Keep your content donor-focused

Your letters should stay focused on your supporters themselves and their accomplishments, not your nonprofit. Use mostly second-person words, such as “you” and “your” instead of first-person words like “our” or “I.” This distinction shows donors that your nonprofit couldn’t complete its mission without supporters’ tireless efforts and involvement.

For example, instead of saying:

Our nonprofit just reached its 2023 fundraising goal! 

Say:

Your generous support helped raise $30,000 this year for animal welfare!

Run your copy through a communications audit tool to ensure readability and donor-centricity.

Choose metrics to assess progress

Metrics or key performance indicators (KPIs) will help you assess your progress and your direct mail strategy’s effectiveness. Track metrics such as:

  • New donor acquisition rate
  • Conversion rates from direct mail (whether for donations, event signups, volunteer registrations, etc.)
  • Direct mail donor retention rate
  • Average direct mail donation amount
  • Direct mail ROI

Make sure to also track donor demographics and characteristics for donors who engage the most with your direct mail messages. You can create a new marketing persona using patterns and trends that emerge in your direct mail audience. This segmentation can help refine your direct mail marketing over time as you learn more about your target audience and design your materials to appeal to their interests.

As you craft your nonprofit’s online fundraising strategy, don’t forget about the role that direct mail can still play in your fundraising success. Direct mail can deliver the additional personal touch many supporters need to take the leap and become donors, volunteers, or advocates.


Author: Joshua Meyer

Joshua Meyer brings more than 20 years of fundraising, volunteer management, and marketing experience to his current role as the VP of Demand Generation for Bloomerang. As a member of the Bloomerang marketing team, Josh manages the organization’s growth marketing efforts. Through his previous roles at the Human Rights Campaign and OneCause, he has a passion for helping to create positive change and helping nonprofits engage new donors and achieve their fundraising goals

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